Tata Capital files for ₹15,000cr mega IPO in India: Report
What's the story
Tata Group's financial services division Tata Capital, has filed papers with the Securities and Exchange Board of India (SEBI) for an IPO of over ₹15,000 crore, Moneycontrol has reported. The company opted for the confidential pre-filing route for the move. With this strategic decision, Tata Capital has becomes the eighth major Indian firm to take this route after Tata Play, OYO, Swiggy, Vishal Mega Mart, Indira IVF, Credila Financial Services, and PhysicsWallah.
Stake
Tata Sons owns majority stake in Tata Capital
Tata Sons, the Tata Group's principal investment holding company, directly owns 92.83% stake in Tata Capital as of March 31 this year. The rest of the shares are held by other group entities and International Finance Corporation (IFC). The proposed IPO will comprise a fresh issue of up to 230 million shares and an offer for sale from existing shareholders.
Advisory role
Tata Capital enlists investment banks for IPO
Tata Capital has roped in 10 investment banks as advisors for its upcoming IPO. These are Kotak Mahindra Capital, Citi, JP Morgan, Axis Capital, HSBC Securities, ICICI Securities, IIFL Capital, BNP Paribas, SBI Capital, and HDFC Bank.
Benefits
Confidential pre-filing offers strategic advantages
The confidential pre-filing route, which SEBI introduced in November 2022, enables companies to keep sensitive business details or financial metrics and risks under wraps. This method gives issuers the comfort of confidentiality until they take a final call on the listing. It also gives them flexibility to withdraw later if required based on market conditions without disclosing key information publicly.
Regulatory compliance
IPO aligns with RBI's requirement for NBFCs
Tata Group's move to list Tata Capital comes in accordance with the Reserve Bank of India's (RBI) mandatory rule for "upper layer" non-banking financial companies (NBFCs) to go public within three years of being notified. Tata has to do so by September 2025.